In a world where change is constant, businesses must be able to evolve and adapt quickly to remain successful. However, according to PwC’s 27th Annual Global CEO Survey, nearly two-thirds of CEOs report reallocating 20% or less of resources, including financial and human resources, from year to year. This suggests that a more aggressive approach to resource reallocation, including human resources, may be required to achieve success.
Recent data from Gartner, Deloitte, and Accenture support the importance of resource reallocation. Gartner found that companies in the top quartile of digital maturity increased their profitability by 23% compared to an industry average of 15%. Deloitte found that companies with high levels of digital adoption have revenue growth rates five times higher than those with low levels of adoption. And Accenture found that companies that focus on innovation are three times more likely to achieve above-average revenue growth.
Businesses must also look beyond their walls and embrace business ecosystems by forming partnerships and alliances with other companies to provide what customers need. According to Rally Recruitment Marketing, companies that prioritize building strong talent pools in their ecosystems enjoy an 81% higher revenue growth than those that don’t.
Ultimately, CEOs and their leadership teams must be willing to make tough decisions regarding resource allocation and other investments to create value and achieve success. They must consider the data, collaborate with other companies to access wider talent pools, and be agile and innovative in their approaches. In today’s fast-paced business environment, resource reallocation is not just necessary, it’s critical for success.